Superintendent recommends 7.75% FY27 budget increase; committee weighs special‑education stabilization fund

Superintendent Martineau presented a recommended FY27 budget of $32,313,256 — a 7.75% increase over FY26 — and outlined drivers of the increase: special education transportation, out‑of‑district tuition, collaborative tuition and salaries. The recommendation included reducing 8.4 full‑time equivalent positions through attrition and retirements.

Martineau said circuit breaker reimbursements were about $800,000 lower than in prior years, intensifying pressure on the budget. The superintendent cautioned that using FY27 circuit breaker funds to balance the budget could create risk for FY28 and recommended a measured approach to maintaining services while managing costs.

To address volatility in special‑education spending, staff proposed forming a Special Education Stabilization Fund under Section 24 of Chapter 218 of the Acts of 2016. That reserve could be used for unexpected, unbudgeted special‑education costs (transportation, out‑of‑district placements) and would require majority votes by the school committee and the local legislative body; the fund balance cannot exceed 2% of annual net school spending (roughly $500,000 by staff estimate).

Committee members requested additional budget scenarios showing (a) the superintendent’s recommended budget, (b) a level‑service budget that restores positions and (c) versions that carve out special‑education costs for town consideration. Members asked for a special subcommittee or additional operational meetings before budget votes; staff agreed to present alternative versions in February and to meet with town finance officials before town meeting.

The committee voted unanimously earlier in the meeting to accept the FY26 monthly general fund report; members did not vote on the stabilization warrant article but instructed staff to prepare a warrant article and to bring formal language for a February vote.